Supreme Court Limits Scope For Suing Foreign Companies In The US - Corporate/Commercial Law - United States
What are the standards for connections?Foreign companies doing business in the US are often concerned about getting sued before a US court, even in situations where there is no apparent connection to the US. In its recent Daimler AG v Bauman et al. ruling, the Supreme Court seems to have placed some limits on this broad jurisdiction by ruling that a foreign company cannot automatically be sued in a State court if it has no clear links with that State.
Extending this logic, a majority of the Court ruled that an outof-state association selling mail order insurance had developed sufficient contacts and ties with Virginia residents so that the State could institute enforcement proceedings under its Blue Sky Law by forwarding notice to the company by registered mail, notwithstanding that the Association solicited business in Virginia solely through recommendations of existing members and was represented therein by no agents whatsoever.848Acknowledging that the connection of the company with California was tenuous— it had no office or agents in the State and no evidence had been presented that it had solicited anyone other than the insured for business—the Court sustained jurisdiction on the basis that the suit was on a contract which had a substantial connection with California. "The contract was delivered in California, the premiums were mailed there and the insured was a resident of that State when he died. It cannot be denied that California has a manifest interest in providing effective means of redress for its residents when their insurers refuse to pay claims."851
he StateSuing Out-of-State (Foreign) Corporations :: Fourteenth Amendment--Rights Guaranteed: Privileges and Immunities of Citizenship, Due Process, and Equal Protection :: US Constitution :: US Codes and Statutes :: US Law :: JustiaOn what basis can San Francisco regulate foreign commercial activity on the Internet?
Here are the clear contacts:However minimal the burden of defending in a foreign tribunal, a defendant may not be called upon to do so unless he has the 'minimum contacts' with that State that are a prerequisite to its exercise of power over him.
1. San Francisco residents need to download it for it to work.
2. The app needs to have a portal to San Francisco (it does).
3. What is being exchanged for money is parking space in San Francisco.
Learn the law. Quit trying to circumvent it.